Agenda item - INFLATIONARY INCREASE IN OFF-STREET CAR PARKING TARIFFS FOR 2018/19

REPORT OF THE HEAD OF DEVELOPMENT AND BUILDING CONTROL

To consider proposed inflationary increases in off-street car parking tariffs for 2018/19.

RESOLVED:

(1) That the proposed off-street car park tariffs for 2018/19, as set out in Tables 1 to 5 of Appendix B of the report, be adopted;

(2) That the proposed increase in season tickets prices of 5.1%, for 2018/19, as set out in Table 6 at Paragraph 9.2 of the report, be agreed for each of the Council’s long stay car parks in Hitchin, Letchworth Garden City and Royston;

(3) That it be agreed not to increase the charges for resident permits, visitor permits, business permits or visitor tickets for resident permit zones for 2018/19; and

(4) That the proposed tariff changes, as agreed in Resolutions (1) and (2) above, be implemented as soon as practicable, and that officers, in consultation with the Executive Member for Policy, Transport and Green Issues, proceed with the implementation as required.

REASON FOR DECISION: To effectively manage the use of the car parks in accordance with the Council’s Fees and Charges Policy as set out in its Medium Term Financial Strategy (MTFS).

The Executive Member for Policy, Transport and Green Issues presented a report of the Head of Development and Building Control in respect of a proposed inflationary increase in off-street Car Parking Tariffs for 2018/19. The following appendices were submitted with the report:

Appendix A – Summary of car park trend data 2017/18 and recommendations for 2018/19 inflationary adjustment – consultant’s report; and

Appendix B – proposed 2018/19 Tariff increases for NHDC Off-Street Car Parks.

In accordance with the Fess and Charges Policy set out in the Medium Term Financial Strategy (MTFS), the Executive Member for Policy, Transport and Green Issues referred to the proposal to increase the Council’s car park tariffs for 2018/19, as set out in Appendix B to the report; the proposed increase in season ticket prices for 2018/19 set out in Table 6 of the report; and the proposal not to increase the charges for resident permits, visitor permits, business permits or visitor tickets for resident permit zones for 2018/19.

The Executive Member for Policy, Transport and Green Issues drew attention to the three forecast models for car park usage set out in Paragraph 8.4 of the report, and Paragraph 8.5 showed the budgetary information connected with the prosed inflationary tariff increases. One of the key drivers was to spread the cost of car parking charges across the District in an equal fashion. He stated that one of the successes over the past few years was the “free after 3pm” scheme in all Royston car parks, which it was proposed to retain for 2018/19.

The Executive Member for Policy, Transport and Green Issues advised that, in the main, the 2018/19 increases were 10p above the 2017/18 rates. He did not subscribe to the argument that the tariff increases would discourage the use of Town centre car parks. However, nationally there had been a reduction in car parking in town centres, and so the local position reflected the national decline.

The Executive Member for Community Engagement and Rural Affairs stated that he did not support the proposed tariff increases, and neither did his councillor colleagues in Royston (including Councillors Hill and Green). He felt that the idea behind the MTFS was that there would not be huge tariff increases. However, as far as he was concerned CPI + 2% equated to a 5.1% rise, but it had been rounded up to 10p. For some tariffs, therefore, such as a rise from a 50p to a 60p charge, this was effectively a 20% increase.

The Executive Member for Community Engagement and Rural Affairs therefore considered that this unilateral increase across the District would not aid in the vitality of towns, as all the towns were different. He referred to the general decline of car parking in all of the District’s towns, and so less people were visiting town centres. Income had held up to some small degree in Hitchin and Letchworth Garden City, but not so in Royston.

The Executive Member for Community Engagement and Rural Affairs considered that increase would drive people out of the town centres, and that it was evident that town centres were becoming service-led, with users not visiting a specific shop, but obtaining a service. He felt that users would not wish to pay the increased tariffs and would look to obtain the service out of town or on the edge of town.

The Executive Member for Community Engagement and Rural Affairs referred to the “free after 3pm” scheme information set out in Paragraph 11.3 of the report, and commented that the £13,000 loss of income figure stated was probably a guess, as there had been no estimate of usage at the time that the scheme was introduced.

The Executive Member for Community Engagement and Rural Affairs stated that the impact of the proposed tariff increases would not be apparent until at least six months’ time, but he foresaw a gradual decline in parking in the Royston car parks.

The Executive Member for Finance and IT accepted that the nature of town centres was changing, with the proliferation of service-led retailers. The Council had a MTFS which stated that fees and charges would be increased by CPI + 2%, although it had never been intended that every price level in every policy would be increased by this amount, and that this logic had never been applied to the parking charging policy.

The Executive Member for Policy, Transport and Green Issues drew attention to the fact that Royston, in common with Knebworth, had the lowest parking charges across the District. If charges were not increased in Royston, then they would have to be increased elsewhere, and there would no doubt be objections from the other towns that they were effectively subsiding Royston. The car park usage and income generation figures would be looked at going forward, and he hoped that the Executive Member for Community Engagement and Rural Affairs’ prediction of a reduction in usage would not be realised.